What is bitcoin mining

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Bitcoin mining is the process by which new bitcoins are entered into circulation, but it is also a critical component of the maintenance and development of the blockchain ledger^[1]. Miners use sophisticated computers to solve complex mathematical algorithms that validate transactions on the blockchain, and they are rewarded with newly-created bitcoins for each block they successfully verify^[2]. Apart from validating transactions, mining also prevents double-spending and secures the network against tampering^[3]. The process requires an enormous amount of computational power, and mining has become increasingly competitive and costly, with specialized hardware and electricity requirements, and it has contributed to debates about the environmental impact of the mining process^[4].

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